Jan. 19 (Bloomberg) -- Measures to boost the U.S. economy should include tax rebates for most Americans and additional assistance for the unemployed, Massachusetts Representative Barney Frank said today.

Any economic stimulus plan also should aid people who've lost their homes or are fighting to avoid foreclosure and help states facing shortfalls because of declining tax receipts, Frank, chairman of the House Financial Services Committee, said in the Democratic Party's weekly radio address.

Democrats, who control Congress, are seeking agreement with Republicans and President George W. Bush on ways to counteract threats to an economic expansion now in its seventh year. Bush yesterday proposed as much as $150 billion in corporate investment incentives and personal tax rebates, while Democrats warned against extending past tax cuts the administration backs.

``Economists agree that middle and working class people are most likely to spend that money in a way that will effectively stimulate the economy and create jobs,'' Frank said today.

Among the signs of a slowing economy, Frank pointed to a jump in unemployment in December, a contraction in manufacturing and the slumping housing market.

``A crisis that spread rapidly from the subprime mortgage market to the broader financial markets now threatens the entire economy and the well-being of American workers and their families,'' Frank said.

Longer-term solutions should include stronger government enforcement against abuses that prompted the current decline, he said. Frank rejected arguments that firmer government regulation would damage the economy.

``In fact, appropriate intervention not only promotes economic growth, its absence, as we have learned, can slow it,'' he said.

To contact the reporter on this story: Viola Gienger in Washington at vgienger@bloomberg.net.

Last Updated: January 19, 2008 12:31 EST